contender

Is the Dollar Rallying on Realigned Expectations?

As much as I hate to admit it -- cuz im way against the creative abandon the fed and sec-treas have used to abate this credit/confidence issue -- I think Paulson may have restored some confidence in the bucko. I hear those TV personalities saying the dollar is coming down cuz oil is coming down... errumm... whatever ! If our monetary life is predicated on sentiment to a rectangular piece of paper then methinks our (and their) confidence in our dollar is factor # 1 - I cant reconcile the huge fiscal deficit we are carrying with a strong dollar though

I have to take issue with your conclusion that $120 oil is acceptable - I dont think it is. The current 'shock' has yet to completely seep through to the consumer -- and we have heard quite a few companies talking about using the pricing power they have to jack up prices. Of course they are already engaged in the American past-time of just putting less content in each unit and saving costs on the margin.

In any case I think oil needs to be closer to $100, and /should/ be $85, tops at this point -- I guess Ill settle for $100 -- but $120 is still too high by far.

Take care.